Question

Urban Bloom, Inc.'s books show an ending cash balance of $19,000 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $4,800, deposits in transit of $3,800, NSF check of $280, and interest earned on the bank account of $190, the company's up-to-date ending cash balance equals:

Answer 1

The up-to-date ending cash balance for Urban Bloom, Inc., after adjusting for bank reconciliation items, is $17,910. This is calculated by adding deposits in transit and interest earned to the book balance, and subtracting outstanding checks and the NSF check.

Step-by-step explanation:

The student has asked how to calculate Urban Bloom, Inc.'s up-to-date ending cash balance after considering several items in their bank reconciliation. To calculate the adjusted cash balance, we must account for outstanding checks, deposits in transit, NSF checks, and interest earned.

From the ending cash balance shown on the company's books, we subtract the total outstanding checks, add the deposits in transit, subtract the NSF check amount, and add the interest earned. The formula becomes: Adjusted Cash Balance = Book Balance + Deposits in Transit - Outstanding Checks - NSF Check + Interest Earned.

The adjusted cash balance calculation is as follows:

• Book Balance: $19,000
• Add: Deposits in Transit: $3,800
• Subtract: Outstanding Checks: $4,800
• Subtract: NSF Check: $280
• Add: Interest Earned: $190

Therefore, the up-to-date ending cash balance for Urban Bloom, Inc. is calculated to be $19,000 + $3,800 - $4,800 - $280 + $190 = $17,910.

Answer 2

$15,110.00 without the bank reconciliation being posted to the bank account or $19,910.00 given it is posted and available in the balance.

Step-by-step explanation:

$19,000-3,800.00-280.00+190.00=$15,110.00 (without the bank reconciliation posting and showing available in the account.)

OR

$19,000-4,800.00-3,800.00-280.00+190.00=$19,910.00 (with the bank reconciliation posting and showing available in the bank account.)